Last week scientists from the University of Texas John Griffin and Amin Shams said the traders have repeatedly used the tokens of a startup Tether to manipulate the price of Bitcoin in 2017. In such cases, the first produced is not supported by the new dollar coins to support the exchange rate of Bitcoin, cryptocurrency and then merged for the replenishment of the dollar reserve of the company.
Tether now published “proof” that it actually provided a token dollar. However, the report covers only one day, and carried out by his company, which does not have the right to engage in audit. This writes Cointelegraph.
That hides Tether
According to a report by Tether, the company’s Bank accounts kept of 2.55 billion dollars. At the time the audit was issued 2.54 billion tokens USDT. However, these data were relevant only for one day — June 1. What is the amount held in the accounts of a startup before and after this date are not reported.
The questions raised and the report author. Its preparation engaged the law firm of Freeh Sporkin & Sullivan, LLP (FSS), which does not have the right to audit. In conversation with the publication of General counsel Tether STU Hagner explained the decision discrepancy of cryptocurrency accounting standards before the advent of digital money.
The major audit firms will not work with clients dealing in cryptocurrency. The fact that the existing accounting standards obsolete, and without them it is impossible to conduct a full audit. We went to contract with FSS, since they thought that this is the best opportunity in the current situation.
FSS in its statement also noted that not conducted to assess the performance of the Tether of traditional audit procedures.
FSS is not the audit company was not in compliance with the above review and confirmation of data using generally accepted accounting principles. The FSS without going further assumed that the staff of the Bank providing confirmation have been duly authorised to disclose such information and to ensure its truthfulness.
Bitmex previously, analysts assumed that the Tether has the necessary dollars to ensure token, however, the funds are stored in Bank of Puerto Rico. In what jurisdiction is the financial institution mentioned in the report, is not specified.